EDP Renewables (EDPR), a global leader in renewable energy headquartered in Spain, has announced its entry into Vietnam via a 28 megawatts of AC power (MWac) solar photovoltaic (PV) project. This is also the first time EDPR has established its presence in Asia.
EDPR, which is the world’s fourth-largest renewable energy producer, acquired the Trung Son Solar PV project in Vietnam from Trina Solar, a leading PV and smart energy total solution provider. The solar power plant is in the Khanh Hoa Province, and has a power purchase agreement with power company Vietnam Electricity (EVN) for 20 years under a Feed-in Tariff (FiT). The total investment for this project is over USD 43 million.
According to the CEO of EDP Renewables, the reason why EDPR chose Vietnam as the first country to enter in Asia is because of its fast-growing economy, with demand for power increasing at 10% per annum, and strong fundamentals for renewable energy development.
The Vietnamese government has established a power development plan to accelerate the country’s transition to clean energy. Under the Power Development Planning VIII (“PDP8”), the country aims to reach 30% of capacity from renewable sources by 2025 and 37 GW of wind and solar PV installed capacity by 2030, implying wind and solar PV capacity additions of 28 GW until 2030. Besides, the government has implemented multiple incentives such as long-term purchase agreements, feed-in-tariff and other incentives for investors in this sector.
(Sources: EDPR; Vietnam Energy)